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Reps. Lofgren, Panetta Announce $74M in Federal Loans to Improve Water Infrastructure in Santa Cruz County

March 5, 2024

WASHINGTON, DC – Today, U.S. Representatives Zoe Lofgren (CA-18) and Jimmy Panetta (CA-19) announced that the U.S. Environmental Protection Agency (EPA) will distribute $74,000,000 in low-cost federal loans to the Pajaro Valley Water Management Agency to support two water supply projects in Santa Cruz County.

“As the threat of climate change endangers our water supply, it is critical to invest in smart, sensible solutions that safeguard existing water resources. We applaud the EPA for providing these two low-interest federal loans that will help sustain ecosystems, strengthen local economies, and protect our water supply. We remain committed to ensuring that local water infrastructure projects receive the attention and federal funding they need,” said Reps. Lofgren and Panetta.

The EPA funding comes from the Water Infrastructure Finance and Innovation Act (WIFIA) program, which supports water and wastewater infrastructure projects. This funding will support the College Lake Project and Watsonville Slough System Project.

The College Lake Project will increase the storage capacity of College Lake and construct a new pipeline to supply lake water to nearby farmland. This will help reduce the reliance on groundwater to supply local farms.

The Watsonville Slough System Project will divert available freshwater to help recharge the Watsonville Slough, a network of coastal marshes and wetlands.

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